Bank card issuing associations charge a percentage of the
sale for the use of their cards and this amount is referred
to as a transaction fee. The percentage paid by the merchant
may vary depending on the monthly sales volume, the average
sale size and whether a transaction is processed with or
without the card being physically present.
A gateway fee is applied by the transaction processor to
cover the costs of receiving and processing the transaction.
While a transaction fee is a contribution for the convenience
of accepting credit card payments, a gateway fee pays for
the use of the infrastructure to receive payment information,
request authorisation from the customers bank, transmit
the authorisation information to the merchant and to facilitate
payment of the merchant.
Please click here to learn
more about payment gateways